Palos Verdes, California
Steve Campbell
Business Development Officer
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Best Factoring Companies
Chattanooga, Tennessee
Talley Clower
Owner
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Houston, Texas
Brandon Hooks
Account Manager
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Midland, Texas
Justin Ryan
Sr. Vice President
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Irving, Texas
Lisa Hultz
President Sales
Industries Served
Factoring Company Reviews
Club Rating
5/5
500 Silver Spur Rd, Palos Verdes, CA
J D Factors is a California factoring company headquartered near Los Angeles with offices located throughout the United States and Canada. They've been providing receivables factoring since 1989, including freight bill factoring for trucking companies of every size. J D Factors is dedicated to building relationships by providing superior customer service and support, along with upfront and transparent pricing, and no hidden fees
Year founded: 1994
Associations:
IFA, SFNet
Industries we serve
Club Rating
5/5
800 W. Airport Fwy., Irving, Texas 75062
Mazon Associates is the oldest factoring company in Texas. In their 45 years of providing invoice factoring services, they've established themselves as seasoned professionals with a reputation for incredible customer service. Second-generation family owners, Lisa and Shelley, have more than 25 years each in their respective roles as company leaders. Their clients rave about the quality service they receive from the entire staff of Mazon Associates. When you factor in the their simple rates and contract terms, Mazon is a sure bet for any small business looking to improve cash flow.
Year founded: 1976
Associations:
IFA, SFNet, BBB
Industries we serve
Club Rating
5/5
5901 Shallowford Rd, Chattanooga, TN 37421
Provident Commercial Finance serves the needs of clients on a daily basis through the continuous, uncompromising, honest, dependable effort that is required to earn loyalty. Jason, Talley, and the team have been in the factoring industry for over 100 years combined and are ready to help make your accounts receivable the key to unlocking the potential of your business. Cash flow is the foundation of any business – we provide the money you need to grow, as quickly as your business model will allow. At Provident, it’s about you and your company.
Year founded: 2015
Associations:
IFA
Industries we serve
Club Rating
5/5
16420 Park Ten Place, Ste 125 Houston, Texas 77084
Crown Financial is the nationwide gold standard for invoice factoring services. Dedicated to helping companies grow and succeed, they work hard to provide custom solutions, low rates, simple processes, and 24-hour funding. Family-owned and operated for over 2 decades, their welcoming culture and high-touch, relationship-driven approach to invoice factoring is behind their unparalleled customer service and continued growth.
Club Rating
5/5
400 W Illinois Ave Ste 1120, Midland, Texas 79701
Velocity Financial is a Midland, TX factoring company that specializes in oilfield service factoring. They serve businesses in the Permian Basin area, such as welding, trucking, rigging, and oilfield construction. Their team has more than 35 years of oil and gas management experience. Their factoring services include back office support with free customer credit checks, receivables collections and account management.
Year founded: 2019
Associations:
IFA
Industries we serve
"These factoring companies are not chosen lightly; nor is this paid advertising.* Our award-winning factoring companies represent the cream of the crop."
Rick Hultz, Owner FactoringClub
* FactoringClub receives a broker fee from these featured companies; however, we receive the same type commission from all of our factoring company sponsors, regardless.
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Accounts receivable factoring for your business
Solve the trade credit cash flow problem
Invoice factoring, or accounts receivable factoring, solves the cash flow problem caused by your customers’ trade credit terms. Trade credit is a business-to-business (B2B) agreement in which your customer purchases goods or services on account without paying you up-front.
Credit terms are typically 30 days or more, depending on your industry and customer. Factoring companies advance you cash for your new invoices, so you don’t have to wait for 30, 45 or 60+ days to receive your hard-earned cash.
Get factoring rates as low as 1.5%, up to 5%
Factoring companies offer rates as low as 1.5% for businesses that factor millions in invoices each month from top-rated customers. Smaller businesses can generally expect to pay anywhere between 3% to 4% of the invoice amount depending on monthly factoring amount, invoice volume, and days outstanding.
Contract terms make a difference
Factoring companies don’t advance the full amount of your invoices. They hold a reserve as an allowance for any unexpected bad debts or short-falls. Advance rates are typically 80% to 90% for most industries. Trucking factoring companies usually offer higher advance rates, as much as 100%.
Contract lengths range anywhere from one month to 2 years, with some factoring companies offering a no-term contract that lets you cancel at any time. This is probably the most important consideration when looking for a factoring company. Don’t get locked into a long-term contract because your situation my change at any time.
Evaluate non-recourse factoring benefits vs costs
Many factoring companies offer non-recourse factoring which is a credit guarantee that protects you if your customer doesn’t pay. Non-recourse factoring usually costs more than recourse, but it may be worth the insurance. Non-recourse only applies to losses resulting from credit issues such as insolvency or bankruptcy. No matter the recourse option, you’re always liable for disputes, faulty goods or incorrect billing.
Know how accounts receivable factoring works
- After completing your sale or service, you send your invoice to the factoring company.
- The factoring company verifies the invoice is correct.
- The factoring company funds your bank account, often the same day.
- The factoring company collects the accounts receivable from your customer.
- The factoring company sends you the reserve as final payment.
Freight bill factoring for your trucking company
Avoid the freight bill cash flow problem
Trucking companies all across the nation depend on freight factoring to run and operate their businesses. Freight factoring stabilizes your cash flow by giving you immediate cash for your freight bills upon load delivery. You don’t have to wait 30 to 60 days for your customers to pay, which enables you to handle more deliveries.
Freight bill factoring provides a complete financing alternative to negotiating with every single freight broker for which you deliver goods. Freight factoring companies handle all your invoices, no matter how many brokers you have. This is especially important for trucking companies that work with a large number of freight brokers such as C.H. Robinson, TQL, or XPO Logistics.
If you operate a trucking company, and your shipping customers and freight brokers have good credit but are slow paying their freight bills, then you should consider freight bill factoring. Not only do you get cash advances, but you often receive other benefits such as fuel cards; fuel discounts; or tire and maintenance discount programs.
Freight factoring rates as low as 1.5%, up to 4%
Freight factoring rates are very competitive. Truck factoring companies offer rates as low as 1.5% for large carriers that factor millions in freight invoices each month, while owner-operators and smaller truck companies with one to five trucks can expect to pay between 2.5 to 3.5% for freight factoring services.
Trucking advance rates as high as 100%
Trucking companies enjoy the best advance rates in the factoring industry. Other types of businesses such as staffing or construction often carry advance rates of 85% or less, but trucking cash advance rates are often 95% or more. Some freight factoring companies fully-fund 100% of your freight bills, advancing the entire invoice amount less factoring fees.
Non-recourse factoring – credit safety
Many freight factoring companies offer the option of non-recourse factoring which is a credit guarantee that protects you from customer non-payment due to credit issues. Non-recourse factoring usually costs more than recourse, but it may give you the peace of mind you need to sleep at night. Recourse and non-recourse factoring pertain only to non-payments resulting from credit issues such as insolvency or bankruptcy. You’re still liable for disputed claims, non-delivered goods or incorrect billing.
How freight bill factoring works for you
- Complete the delivery of goods to your customer and send your freight bill (or bill of lading) to your freight factoring company.
- The freight factoring company purchases your freight bills and sends you cash for up to 100% of the invoice (less factoring fees) within 24 to 48 hours.
- The freight factoring company collects payment from your customers and sends you any reserve as final payment.
Truck factoring companies advance you cash to keep your trucks on the road, but they also do much more. Trucking factoring companies typically provide back office functions such as credit checks on brokers and shippers; invoice generation and submission; receivables processing and accounting; as well as professional collections. These services are extremely helpful to any trucker, whether your a single owner-operator or a large carrier.
Speed is critical in the trucking industry, especially when you need to get paid for your deliveries. It’s why the entire trucking industry depends on freight factoring. Whether you’re an independent owner-operator, mid-size fleet, or large carrier, you’ll benefit from freight bill factoring for consistent cash flow. Freight factoring is the fastest way to get paid by your shippers and freight brokers, so you can deliver more loads and grow your business.
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